Coalition Sues Kentucky Over 14.25% Prediction Markets Tax
Updated
Updated · The Associated Press · Jun 13
Coalition Sues Kentucky Over 14.25% Prediction Markets Tax
3 articles · Updated · The Associated Press · Jun 13
Summary
Kalshi, Crypto.com and Polymarket joined a Friday state-court lawsuit seeking to block Kentucky’s new 14.25% excise tax on prediction market operators’ transaction fees.
The coalition says the levy is discriminatory, unconstitutional and preempted by federal law because it targets derivatives trading on federally regulated exchanges and exceeds Kentucky’s 9.75% tax on horse-track wagers.
Attorney General Russell Coleman said Kentucky will defend the statute, casting the fight as protection against out-of-state companies challenging the state’s sports-betting laws.
The case lands as prediction markets push for broader legitimacy while facing scrutiny over misuse, including a former U.S. Army soldier charged in April with making $400,000 from classified-information trades on Polymarket.